Nathan Chen
Sep 5, 2018 · 1 min read

Agree with many sentiments in this piece; especially appreciated the points on friction. On how tokens capture value, I think the tricky part is we haven’t seen a token do it right yet — arguably, besides Bitcoin. Like you allude to earlier, the price of a token is an inadequate indicator of the value a token generates if the token has other uses besides that of money.

After some reflection, there are two questions I’d like to get your thoughts on:

  1. Is it right to apply monetary theory to things that people view as ‘equity in the network’?
  2. How does the difference between centrally and decentrally-planned value capture affect social scalability (if at all)? For instance, the difference between BNB’s central buyback-and-burn and a smart contract or DAO that executes a similar function.

BTW, I wrote an article with similar perspectives you might enjoy. https://medium.com/@nathan.writes/the-fundamental-assumption-of-cryptosystems-723d32dc461a

    Nathan Chen

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    Economics and crypto. BizOps at ConsenSys Labs, organizer for RadicalxChange. Connect with me on Twitter @iam_nChen